BP Secures Agreement to Develop Kirkuk Oil Fields

Prime Minister Mohammed S. Al-Sudani oversaw the signing of a strategic agreement between Iraq’s Ministry of Oil and British energy giant BP, aimed at enhancing the development and production of four major oil fields in Kirkuk. The ceremony, attended by Minister of Oil Hayan Abdul Ghani and BP Chief Executive Officer Murray Auchincloss, marks a pivotal step in Iraq’s efforts to expand its energy sector and optimize hydrocarbon recovery.

The agreement covers the rehabilitation and development of the Kirkuk oil field (Baba and Avana domes), Bai Hassan, Jambur, and Khabbaz. The initiative seeks to increase crude oil production to a peak of 420,000 barrels per day while implementing advanced recovery techniques to maximise efficiency.

A key component of the project is the utilisation of associated gas, with plans to rehabilitate and expand facilities operated by the North Gas Company. This initiative aims to produce 400 million standard cubic feet per day of processed gas, reducing wasteful flaring and enhancing Iraq’s environmental sustainability efforts. Furthermore, the agreement includes the construction of a 400-megawatt power plant, bolstering the country’s electricity generation capacity.

Prime Minister Al-Sudani emphasised that the project aligns with Iraq’s broader strategy to modernise its oil and gas sector, reduce environmental impact, and create employment opportunities. The initiative is expected to generate significant job openings in technical and engineering disciplines while contributing to the development of national expertise in energy production.

The agreement with BP reflects Iraq’s commitment to increasing energy efficiency, reducing emissions, and strengthening its position as a key player in the global oil market.